How Elections Affect The UK Car Market

You might expect that with all of the uncertainty surrounding the general election people would be keen to keep their money in the bank and shy away from large purchases. New figures from the Society of Motor Manufacturer’s and Traders (SMMT), however, show that’s not the case.

Sales of new cars rose by five per cent overall in April to give the industry its strongest performance since 2005. This represents continuous sales growth for 38 months, the longest since 1959. Actually if you look back at previous elections this isn’t as unusual as you might think. Of the previous nine general elections six have shown a peak in car sales during the three months before and after.

Why do we buy at election time?

The reason for this could be that people decide to spend their savings in the run up to a vote as they fear them being taxed. They may worry about a rise in VAT pushing up prices. Or it could be that in the wake of a new government being elected there’s a wave of consumer confidence.

Whatever the reason it’s interesting that of the three elections where car sales didn’t spike (1992, 2005 and 2010), two have coincided with an economic downturn.

What about used cars?

What if you’re not in the market for a new car? Buyers of used cars for sale in Aberdeenshire for example still benefit from the strong market. More new cars being bought means more trade ins passing through the system so there’s a better choice available for buyers on the secondhand market.

Fleet sales make a difference here too. In April the growth in fleet sales was higher (nine per cent) than that in private sales (just under three per cent). Ex-fleet cars often make a sound choice for used car buyers as they’re usually well maintained and as they’re changed regularly may well have the balance of the manufacturer’s warranty to provide peace of mind.

Whether you’re looking to buy your next car new or used it seems an election is no reason to put off making the decision. Though of course whenever you buy you should shop around for the best deal.